AJA creates finance history with Airbus corporate jet deal

The financing is the first ever European ECA-supported deal to a corporate entity for private jets, and the transaction was developed, structured, led and financed by HSBC with the backing of the following three ECAs: Germany’s Euler Hermes Kreditversicherungs-acting as the lead agency; France’s ECA, Compagnie française d’Assurance pour le Commerce extérieur and The United Kingdom’s Export Credits Guarantee Department .  

Mr. Mohamed Al Jaber, CEO of the Al Jaber Group said: “Al Jaber Group was honoured to have received the ECA backing which facilitated the financing from HSBC.

“The ECA support for the Airbus planes goes a long way to promote and enhance the already excellent reputation of Airbus, and Al Jaber’s ability to secure what we believe to be the first ever ECA backed financing for a private charter airline, which highlights and underpins the strength of the Al Jaber Group, its creditworthiness and the confidence placed in us by our bank and the ECA’s. It also reflects the confidence and recognition that the international community has with the Emirate of Abu Dhabi highlighting its economic and political maturity and strength.”

The financing package provides for a 10 year tenure with a loan coverage of 80% of the cost of the Green Aircraft plus the outfitting costs.

Mr. Al Jaber added: “We are confident that the Al Jaber Aviation business will be a strong and successful venture, and we are committed to providing the highest standard of service and luxury with an unparalleled and unforgettable travelling experience for our most discerning and respected clients and guests. Al Jaber’s growth goals are aligned to the UAE supporting the government plans to develop Abu Dhabi as a major hub for commercial and VIP aircraft services”.

Mr. Philip Lewis of HSBC’s Export Finance team said: “The transaction is significant in many ways, as it is the first occasion on which the European ECAs have supported the financing of a private jet to a corporate body, with the airframe and outfitting being completed in different countries, and with the aircraft being registered temporarily in one jurisdiction prior to permanent registration in the United Arab Emirates. We regard this business as a landmark transaction for AJA and HSBC which again demonstrates the strength of both our franchise and the ECA product in aviation and the Middle East.”